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AM Gold Inc. Announces 4,000,000 Flow-Through Unit Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2010) - AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") wishes to announce that it has agreed to raise $1,400,000 by the issuance of 4,000,000 flow-through units ("Flow-Through Units") priced at 35 cents per Unit by way of a non-brokered private placement.

Each Flow-Through Unit will consist of one "flow-through" common share of the Company ("Share") and one transferrable common share purchase warrant ("Warrant"). Each two Warrants will entitle the holder to acquire one common Share at 40 cents for a period of 12 months from the closing date subject to an acceleration clause, whereby if the Company's shares trade above 55 cents for 10 consecutive days, the Company has the option to cancel the unexercised warrants on 10 days written notice.

Shares issued pursuant to the private placement, as well as any Shares issued pursuant to the exercise of the Warrants, are subject to a four-month hold period from the date of closing of the private placement. The private placement is subject to the approval of the TSX Venture Exchange. Finder's fees of up to 6% and brokers' warrants of up to 6% may be paid in accordance with regulatory policy.

Proceeds from the private placement will be used to fund the continued exploration of the Red Mountain gold project in Yukon Territory, Canada.

This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.

On behalf of the Board:

Gerald M. Aberle, President & CEO

AM GOLD INC.

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbor.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.